What about technology putting people out of work in the goods sector and then those out of work people trying to get jobs in the services sector? The high rates in services coupled with out-of-work goods employees seeking to now perform services jobs should act as a self-correcting force on prices in education and healthcare.
I know that there is "retraining friction", but that should be temporary and shouldn't lag more than a few years (1-4 years) on average.
It doesn't need to just apply to people who lose their jobs in goods, but also people who are never trained to perform those jobs at all when younger because it had been forecasted that those jobs would be automated away.
I know that there is "retraining friction", but that should be temporary and shouldn't lag more than a few years (1-4 years) on average.
It doesn't need to just apply to people who lose their jobs in goods, but also people who are never trained to perform those jobs at all when younger because it had been forecasted that those jobs would be automated away.